Economic news
This is the most well-known type of fundamental data. In layperson’s terms, the better the economic situation, the greater the price of the asset. For example, if the nationwide economy shows growth, the most liquid stocks also grow. Yes, of course, there are exceptions, nuances, and so on, but overall, there is a positive correlation between the major macroeconomic indicators and the stock market’s growth.
But wait, why are we talking about stock markets while our main point of interest is forex (FX)?
With the FX market, economic indicators such as gross domestic product (GDP), jobless rate, core price index (CPI – the main inflation indicator), and others do not have any real long-term effect. Why? Because currencies have one feature that makes them completely different from any other asset class: they have interest rates.
To understand the concept of the interest rate, we should recall the mechanism that brings money into the economy....
